Congressman Tim Ryan Votes for Grant Funding to Assist Child Care Providers and Tax Credits Providing up to Half of Childcare Expenses | Congressman Tim Ryan
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Congressman Tim Ryan Votes for Grant Funding to Assist Child Care Providers and Tax Credits Providing up to Half of Childcare Expenses

July 29, 2020
Press Release

Washington, D.C. – Congressman Tim Ryan today voted for two urgently-needed bills to provide child care relief for families and providers. COVID-19 has caused significant financial strain for child care providers, forcing facility closures and reducing capacity, already well below our country’s needs.

“In my District and across the country, safe and affordable child care is the key to ensuring that parents can go to work and provide for their families,” said Congressman Ryan. “With half or more of the nation’s child care facilities closing because of the COVID pandemic, the federal government must provide resources to both parents and child care facilities to ensure that our children are able to receive the care they need. This legislation will do that.”

The Child Care for Economic Recovery Act (H.R. 7327), makes significant, ongoing federal investments in child care to support children and working families. It would provide a tax credit for many low-and middle-income families through the Child and Dependent Care Tax Credit (CDCTC) that will cover up to one-half of a taxpayer’s childcare expenses. It also includes support for struggling child care providers by creating a new refundable payroll tax credit for child care providers and an incentive for employers to keep child care workers on payroll, by expanding the employee retention tax credit (ERTC). Lastly, it invests $10 billion in infrastructure to improve child care safety and $850 million to support family care for our essential workers. 

Families with incomes of $120,000 or less and one child would be eligible for up to a $3,000 credit and families with more than one child could be eligible for up to $6,000. Additionally, the bill incentivizes employers to provide dependent care benefits through a new 30% refundable payroll tax credit for eligible employees, and includes a 50% refundable payroll tax credit for mortgage or rent obligations, and utility payments incurred by child care facilities that have suffered a reduction in revenue or are subject to a COVID-19 related closure.

Ryan also voted in favor of the Child Care Is Essential Act (H.R. 7027), which provides grant funding to child-care providers to stabilize the child-care sector and support providers to safely reopen and operate. The bill provides a $50 billion stabilization fund to award grants to child care providers that are currently open or have been temporarily closed due to COVID-19 pandemic. These funds can be used for a wide range of costs to reopen and to stay open safely. These funds must also be used to keep  child care affordable for working families. This bill requires all providers receiving grant funds to provide families with relief from copayments and tuition.

This legislation also provides $850 million to the states to assist in the care of the children of essential workers, who often work long and irregular hours. Also included is a $10 billion investment to improve child care facilities, including structural changes due to COVID-19 needed to facilitate social distancing and improved sanitation procedures. Together, the Child Care for Economic Recovery Act and the Child Care is Essential Act will help stabilize the child care sector and support providers, workers, and the U.S. economy through improved access to quality child care during the COVID-19 crisis.